27.09.2022

Merkel and Macron agree on a eurozone budget

Germany and France plan to create a eurozone budget and the European Monetary Fund. Merkel and Macron opposed the unilateral actions of the EU countries in relation to refugees. Germany and France agreed on the intention to create a single eurozone budget in parallel with the existing EU budget. The agreement was reached on Tuesday, June 19, at the meeting of German Chancellor Angela Merkel and French President Emmanuel Macron with the participation of members of the governments of both countries in the Mezeberg castle near Berlin. However, it has not yet been decided how this budget will be filled, which is planned to be formed in 2021.

According to Merkel, it should promote investment growth and lead to a gradual smoothing of the difference in the development of economies of countries in which there is a single European currency. Macron, in turn, said that it would be “a real budget with annual revenue and expense items.”

Germany and France advocate a change in the European stabilization mechanism, created in 2012 to combat the debt crisis in the EU. It is proposed to be transformed into the European Monetary Fund, which is intended to assist European Union countries faced with financial problems.

Decrease in the influx of refugees to Europe

Germany and France intend to reduce the influx of refugees into Europe. According to Merkel, “a significant increase in the number of personnel” of the European border service Frontex will strengthen the protection of the external borders of the EU. In addition, the German Chancellor supported the initiative of the President of the Council of the EU, Donald Tusk, to create special refugee accommodation centers outside the European Union. According to Merkel, “mechanisms” for the implementation of such a plan need to be developed with the participation of the International Organization for Migration and the Office of the United Nations High Commissioner for Refugees (UNHCR). In his proposal, Tusk did not name specific countries in which such centers could be established. However, EU members are discussing the creation of such centers in Libya and Albania.

Macron supports Merkel on refugee issues

France supports Germany in its vision of EU migration policy. “Unilateral, uncoordinated events will divide Europe, set its peoples against each other and create a threat to the Schengen system,” the statement said after the meeting. Earlier, the German Chancellor regarded the topic of migration as “one of the decisive factors for the unity of Europe.”

Macron stated the need to “as soon as possible” return refugees to the country within the EU in which they first received asylum seeker status. Paris and Berlin will continue to work to gain support from other EU members on this issue, he said.

Merkel, in turn, intends to conclude bilateral agreements with a number of EU countries, which will simplify the process of returning migrants. EU members, especially those affected by the effects of migration, should “receive special support,” says German Chancellor.

European Commission reaction

The head of the European Commission, Jean-Claude Juncker, approved the reaction to the document signed at the end of the meeting at Meseberg Castle. Berlin and Paris in a “very balanced” declaration accepted the European Commission’s proposals on many points, Juncker noted.

Germany’s finance minister answered the question about the future of the euro

In an interview with the Rheinische Post, Olaf Scholz praised the agreements of Angela Merkel and Emmanuel Macron on the reform of the eurozone – in particular, on the creation of its single budget. The euro currency will not cease to exist in the future, German Finance Minister Olaf Scholz is sure. “The euro has no turning back. Because the euro makes our common future in Europe safe, ”Scholz said in an interview with the Rheinische Post, published on Saturday, June 23, affirmatively answering the question of whether the euro will exist in ten years. “Without a single currency, Europe would be less cohesive and less strong,” said the head of the German Ministry of Finance.

He praised the euro-zone reform agreements reached during talks between Chancellor Angela Merkel and French President Emmanuel Macron at Meseberg Castle near Berlin on June 19. Thanks to these decisions, “we continue to build a pan-European house with a strong, waterproof roof that can withstand future storms and downpours,” says Scholz.

In particular, the general eurozone budget will help to stabilize the single currency space through investments, the minister said. According to him, this budget can be replenished, for example, by introducing a tax on financial transactions.

Merkel and Macron intend to reform the eurozone

Merkel and Macron agreed, in particular, on their intention to create a single eurozone budget in 2021 in parallel with the existing EU budget. In addition, it is planned to transform the European Stabilization Mechanism, created in 2012 to combat the debt crisis, into the European Monetary Fund, designed to assist the EU countries faced with financial problems.

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